Markets rally as Pfizer announces vaccine breakthrough

Stocks around the globe rallied as Pfizer Inc. and BioNTech SE, announced that significant progress has been made on a COVID-19 vaccine. Dr. Anthony Fauci the U.S. top infectious-disease specialist hailed the results as extraordinary as the shot prevented more than 90% of symptomatic infections in a trial of tens of thousands. Although results are only preliminary at this point the companies may be able to seek emergency-use status if further tests confirm the safety of the vaccine.

The company’s CEO, Dr. Albert Bourla stated that, “Today is a great day for science and humanity. The first set of results from our Phase 3 COVID-19 vaccine trial provides the initial evidence of our vaccine’s ability to prevent COVID-19”.

Indices and individual equities across the board climbed, with the S&P 500, NASDAQ, Dow Jones all recording new highs, whilst European and Asian stocks also rose.

Trump yet to concede, as Biden wins elections

Over the weekend, the name of the next President of the United States of America was finally revealed. Joe Biden reigned supreme, as U.S. television networks and the Associated Press called the election for the Democratic candidate as he reached the 270 Electoral College votes needed to secure the White House.

Since the outcome was announced, leaders from all over the world began congratulating Biden, apart from the incumbent President and notably the leaders of Brazil, China and Russia.

The President sent several tweets over the weekend, re-affirming his beliefs, with one reading, “I won this election by a lot!” adding, “71,000,000 Legal Votes. The most EVER for a sitting President!”. Many now expect a battle in the U.S. courts to ensue, with Trump contesting the legitimacy of Biden’s victory.

Gold prices drop over $100 in value

Gold prices fell today, recording its biggest one day drop in recent months, as global stock markets rose.

News of the breakthroughs in the search for a viable coronavirus vaccine, was the main contributor to the decline, as investors were once again bullish, leading to sell offs in safe haven instruments.

XAUUSD fell from an intraday high of $1,965, to a low of $1,850, which was the biggest one day move since August 11th, days after the metal reached it’s now all-time high of $2,075.

You’ve Got the Skills, Let’s put them to work

Quote of the day – “Markets are constantly in a state of uncertainty and flux, and money is made by discounting the obvious and betting on the unexpected.”

George Soros

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Eliman Dambell

Senior Market Analyst
edambell@tvmarkets.com